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LO 1-3, 6 1-36. For the purposes of this problem, assume the existence of five auditors: CPA, GAO, IRS, bank examiner, and internal auditor. Also

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LO 1-3, 6 1-36. For the purposes of this problem, assume the existence of five auditors: CPA, GAO, IRS, bank examiner, and internal auditor. Also assume that the work of these various auditors can be grouped into five classifications: audits of financial statements, compliance audits operational audits, accounting services, and consulting services. For each of the following topics, you are to state the type of auditor most probably involved. Also identify the topic with one of the above classes of work. You should organize your answer in a three-column format as follows: Column 1, the number of the topic; Column 2, the type of auditor involved; and Column 3, the class of work. 1. Financial statements of a small business to be submitted to a bank in support of a loan application. Financial statements of a large bank listed on the New York Stock Exchange to be distributed to stockholders. 2. 3. Review of the management directive stating the goals and tion's mail-handling department. 4. Review of costs and accomplishments of a military research program carried on within the air force to determine whether the program was cost-effective. 5. Examination on a surprise basis of Midtown State Bank. Emphasis placed on verification of cash, marketable securities, and loans receivable and on consistent observation of the banking code. Analysis of the accounting system of a small business with the objective of making recommendations concerning installation of a computer-based system. 6. 7. Determination of fairness of financial statements for public distribution by a corporation that has a professional-level internal auditing staff. 8. Review of the activities of the receiving department of a large manufacturing company, with special attention to efficiency of materials inspection and promptness of reports issued. 9. Review of the tax return of the corporate president to determine whether charitable contributions are adequately substantiated. 10. Review of daily attendance during spring term at Blue Ridge Consolidated School District to ascertain whether payments received from the state were substantiated by pupil-day data and whether disbursements by the district were within authorized limits. 11. Review of transactions of a government agency to determine whether disbursements under the Payment-In-Kind program of the U.S. Department of Agriculture followed the intent of Congress. 12. Compilation of quarterly financial statements for a small business that does not have any accounting personnel capable of preparing financial statements

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